Auto Fraud

Welcome to our new attorney Todd Murray

Tuesday, April 16th, 2013

todd photoWe’re proud to announce that Todd Murray has joined our team. Todd was formerly the principal of the Todd Murray law firm, where he defended Minnesotans against debt collection lawsuits, filed claims against debt collectors under the Fair Debt Collection Practices Act, and helped people dealing with wrongful repossession.

Todd is a fearless litigator and brings an enhanced focus on debt collection defense and FDCPA work to Friedman Iverson, as well as bringing his litigation chops to beef up our auto fraud work.

Todd is from Superior, WI, played first-string quarterback at Macalester, and now lives with his wife and three kids in South Minneapolis. He still keeps up a blog reporting on consumer law issues here.

Stupid Car Dealer Tricks: The Yo-Yo Financing Scam

Tuesday, November 9th, 2010

Here’s how the scam works: You go car shopping, you fall in love with a car, and you agree on a price. The dealer is offering 1.9 percent financing, so you take it. You cruise off the lot, just relieved you won’t have to talk to any more car dealers for a while.

A few days later, the dealer calls you back to tell you that your financing was turned down and that you’ll need to come back to the dealership. When you get there, the dealer says that because of your credit rating, you can still have the loan, but at a higher interest rate or for a higher down payment. When you refuse, the dealer turns up the heat–telling you that your trade-in has already been sold, or that they’ll have to repossess your new car, or they’ll report the new car as stolen unless you give it back.

This is the yo-yo scam. When you signed your original loan papers, you might have missed a sneaky contract clause that said the deal was “subject to” or “contingent on” final approval. It’s the ultimate pressure game–once you’ve driven the car a few days, programmed your favorite radio stations and broken in the seats, you’re much more likely to do whatever the dealer says to keep this car.

How to spot this scam:

  • Make sure that any loan contract you sign is final. If you see those weasel words “subject to final approval”–just walk away.
  • Avoid car dealer financing altogether. Separate your car purchase from your financing–an independent bank or credit union has much less incentive to rip you off. Car dealers have gotten good at using financing tricks to drive their sales. Don’t let them.
  • If you’ve been victimized by this scam, contact an attorney right away.

Stupid Car Dealer Tricks: An Intro to Auto Fraud

Friday, September 10th, 2010

For as long as people have been selling cars there have been buyers who’ve felt that they’ve been taken advantage of. There’s even an old joke about being able to tell a car dealer is lying because his lips are moving. Obviously not every dealer is dishonest. And a dealer’s “puffing” – giving his opinion on how great a particular car is–isn’t necessarily fraud.

But there is still plenty of auto fraud being perpetrated on consumers, particularly with the increased number of cars being purchased sight-unseen on the internet. Here are a few of the dealer tricks we’ve been seeing:

1) Blatant lies about the car. Some car dealers run the same online advertisement for multiple used cars (ex. all 2006 Honda Civics are advertised with the same information regardless of features, mileage, condition, etc.).  We’ve also seen dealers advertise cars as having a single owner when they’ve had as many as five. It’s also common for dealers to tell buyers that a car needs only a small repair that will cost, say, $200, when in fact the repair will cost several thousand.

2) Concealing important information about the car. This could be as simple as not telling you that the car had been in accident or more complicated, like performing “spit and chewing gum” repairs designed to keep the car running just long enough to get it off the lot.

3) Rolling back the odometer. This is as simple as it sounds. Someone rolls back the odometer on a car manually (though not how Ferris Bueller tried it with Cameron’s dad’s Ferrari) and fraudulently increases the value by “reducing” the mileage.

4) Title-washing. If a car has been totaled in a wreck it may be repaired, inspected and certified by the state, then re-sold.  If the state certifies the car, it produces what is called a “Salvage” or “Rebuilt” Title. That means the title is stamped to indicate that the car has been in a serious accident.  Sometimes scammers will register cars in a different state using the title that was issued before the accident, hoping that the state will not research the car and therefore issue a clean title. The car could then be sold to a consumer with no knowledge of the car’s history or potentially dangerous defects.

The best way you can protect yourself is to do your homework before you buy. We recommend getting a Carfax or AutoCheck report before you sign anything. Also make sure you print out a copy of any advertisement you find online for the car and save copies of any correspondence you have with the seller (also take notes on phone calls). If you’ve already been the victim of auto fraud, give us a call to discuss your situation.

Welcome to the Friedman Iverson, PLLC Consumer Blog!

Thursday, August 19th, 2010

The world needs another blog like I need an additional hole in my head.  So why are we doing this? We get calls everyday from people who are frustrated and frightened by situations they’re facing. They aren’t necessarily looking to hire a lawyer, but they need some information to determine their rights and assess their options.  We’re always happy to take these calls, but we thought posting answers to the most common questions would be convenient for consumers.

We want this blog to grow organically. We will definitely comment on developments in the law and relevant news stories. We will probably also trumpet our successes (blogs are nothing if not a bit self-indulgent), but a lot of how we’ll develop depends on our readership. If there is a topic that you would like us to address, shoot us an email at: info@friedmaniverson.com.

In the coming weeks and months look for posts on bankruptcy, debt collector harassment, auto fraud and foreclosure.  Please check back early and often and offer your comments.  Let’s make this fun.